Women take the lead in most households' financial decisions, CFP Board finds

Women are playing a dominant role in household financial decision-making, with nearly 70 percent identifying as their household’s primary investment decision-maker, according to a new report from CFP Board.

The study, titled "Building Wealth: Insights on Women’s Aspirations & Growing Financial Power," drew from a survey of more than 300 women, including over 230 mass affluent respondents. The report also took insights from nearly 300 female CFP professionals.

Among the married women the report surveyed, 60 percent said they are the main financial decision-makers in their households. Additionally, 56 percent of women believe financial planners are the best resource to help them achieve their financial goals, surpassing online tools and other options.

“While the number of women CFP professionals has grown by half in the last decade, we must continue to expand this representation to meet the needs of future clients,” Board of Directors Chair Liz Miller said in a statement revealing the findings. “The fact that only 24 percent of CFP professionals are women shows the tremendous opportunity for women to enter this field and help others secure their financial futures.”

The study supports broader research showing that women control an increasing share of US wealth – Cerulli estimates women will get nearly half of the assets in motion during the great wealth transfer by 2048 – a trend expected to accelerate with the ongoing transfer of assets from older generations. Forty-four percent of women surveyed by CFP Board reported being the primary income earners in their households, while another 37 percent said their spouse or partner brings roughly the same amount to the table.

When asked to name their top financial priorities, women were most concerned about their retirement, preparing for the unexpected, and future healthcare expenses. The report found that 83 percent of women prioritize a financially comfortable retirement – with another 71 percent agreeing having more retirement savings is important – while 68 percent focus on building an emergency fund.

Financial planners surveyed in the study also noted that their women clients are especially concerned with caregiving expenses for loved ones. Thirty-seven percent of CFP professionals said their women clients are worried about their children, and 25 percent said reported concerns about a close older relative like a mother, grandmother, or sibling. 

Aside from caregiving, CFP professionals said women were also more likely than men to prioritize preparing for their personal long-term care needs, think about philanthropic giving, and managing their health care costs. In line with that planning orientation, a three-fifths majority of women in the study agreed it is "extremely" or "very" necessary to create a comprehensive plan with the help of a financial planning professional.

“Understanding women’s goals, challenges, and financial planning interests enables CFP professionals to provide tailored advice,” said CFP Board CEO Kevin R. Keller. “A trusting relationship with a personalized perspective is the foundation of ethical, competent financial planning.”

Women also place a high value on working with advisors who demonstrate empathy, communicate clearly, and offer solutions tailored to their specific challenges, the study found.